Accounting - Study Mode

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[#2561] Owners equity balance at the end is Rs. 21,000. During the year additional capital introduced by owner is Rs. 6,000 and drawings made is Rs. 4,000. If net profit for the year is Rs. 8,000. Then what is the balance of owner is equity in the beginning?

(A) Rs. 23,000

(B) Rs. 21,000

(C) Rs. 19,000

(D) Rs. 11,000

Correct Answer

(D) Rs. 11,000

[#2562] Amount set aside out of divisible profit and invested outside is known as:

(A) Reserve

(B) Fund

(C) Capital Reserve

(D) Secret Reserve

Correct Answer

(B) Fund

[#2563] The private property of a partner should be used to

(A) pay his private debts first

(B) if there is any surplus it can be used to pay firm's liabilities

(C) Both A and B

(D) None of the above

Correct Answer

(C) Both A and B

[#2564] Closing balance of depreciation fund is transferred to which of the following account

(A) General reserve

(B) Capital reserve

(C) Asset account

(D) Capital redemption reserve account

Correct Answer

(D) Capital redemption reserve account

[#2565] The rate of interest @ . . . . . . . . p.a is to be allowed to a partner for Advances/Loans given, assuming the partnership deed stays silent on the matter.

(A) 4%

(B) 5%

(C) 6%

(D) 8%

Correct Answer

(C) 6%